Well, Well, Well: Guess what friends. 36 states are facing budget deficits in 2008 and who do you suppose is leading the list of increased spending? Oregon of course! The National Governors Association has released a mid year report and of those 36 states with deficits, 22 are increasing spending for 2009! 14 states have been more responsible and do not have budget deficits.

 

Now friends, I may just be a fifth generation Oregon farmer, but even I can figure this out. If spending is out of control, then you need to cut back because you can never raise taxes enough to fill these massive holes in budgets. Believe it or not, some Democrats have figured this out also, namely the Governor of Maryland, Martin O’Malley. He has ordered mandatory 2 day furlough’s of 67,000 state employees, saving the state 34 million. While he is likely to still want to raise taxes and fees like most other Democrat governor’s (including Gov Kulongoski) at least he is taking steps that are not all that painful.

 

Too bad he hasn’t made it a once a month furlough, which would wipe out his entire 400 million dollar deficit. I wonder if Governor Ted is willing to consider this idea instead of raising 2 billion in new taxes and fees?

 

 

State Deficits and Spending

 

 

Amount of mid-year budget deficit  in millions of dollars

Percent spending increased in 2008 from 2007

Percent spending increased in 2009 from 2008

States that can’t legally carry their deficits into the next fiscal year

Alabama

Amount TBD

7.8

-2.5

X

Alaska

$0

-0.8

9.5

X

Arizona

$1,200

-1.6

-1.3

 

Arkansas

$65

7.2

1.3

X

California

$9,500

1.9

0.1

X

Colorado

$0

5.6

5.2

X

Connecticut

$389

5.7

4.7

 

Delaware

$42

0.9

3.8

X

Florida

$2,142

-1.2

-7.5

X

Georgia

$1,600

7

4.4

X

Hawaii

$295

0.5

1.7

X

Idaho

$0

9.2

5.2

X

Illinois

$2,000

5.2

-0.9

 

Indiana

$0

3.9

3.9

X

Iowa

$0

9.3

3.9

X

Kansas

$142

9.5

4.3

X

Kentucky

$294

7.5

-1.3

X

Louisiana

$0

1.8

0.7

X

Maine

$0

3.5

-1.2

X

Maryland

$246

1.9

1.6

 

Massachusetts

$1,400

8.1

2.8

 

Michigan

Amount TBD

11.2

-3.1

 

Minnesota

$935

7.9

1

X

Mississippi

$42

16.3

1.3

X

Missouri

$0

2.7

9.7

X

Montana

$0

21.9

-4.5

X

Nebraska

$0

3.9

7.2

X

Nevada

$115

-4.4

11.1

X

New Hampshire

TBD

11.9

1.8

X

New Jersey

$1,200

8.4

-1.4

 

New Mexico

$196

0.8

2.6

X

New York

$1,800

3.5

5.6

 

North Carolina

$1,200

9.2

4.8

X

North Dakota

$0

19

4.5

X

Ohio

$937

5.3

5.3

X

Oklahoma

$114

3.1

-2.8

X

Oregon

$142

27.9

-6.9

X

Pennsylvania

$565

3.3

4

 

Rhode Island

$37

5.5

-2.5

X

South Carolina

$724

8.9

-4.4

X

South Dakota

$12

7.8

3.7

X

Tennessee

$700

16.2

-0.1

X

Texas

$0

14.5

-25.1

 

Utah

Amount TBD

19.1

-6.2

X

Vermont

$24

3.5

0.8

 

Virginia

$974

-3.7

-1.7

X

Washington

Amount TBD

3.2

4.4

X

West Virginia

$0

1.5

17.5

 

Wisconsin

$652

3.2

4.4

 

Wyoming

$0

-0.5

-3.6

X

 

Bold Italics represent states that have both increased spending and budget deficits.

Amount TBD - Some states have reported mid-year deficits, but have not yet determined the amount of those deficits.

*For most states, the 2009 fiscal year began in July of 2008.